Last week, gold prices consolidated on hopes from investors and market analysts that the Federal Reserve would announce changes to the prime rate. Minutes released from the Federal Reserve’s meeting disappointed analysts, as they gave no indication that an increase in the prime rate would happen in the immediate future.
Increasing the prime rate can help boost the strength of the United States dollar, which has a ripple effect on investment markets. Many commodities, like gold, react quickly to changes in the strength of the dollar and American investment markets.
Although the Federal Reserve is predicting two more rate hikes this year, it’s not certain when they will be put in place. Failing to commit to an increase in the prime rate means that the dollar is performing a little more weakly, one of many factors in a weak United State economic performance in recent weeks.
As of early trading on Tuesday, May 30, 2017, gold futures for August delivery were trading at roughly $1,265. This shows a minor drop in price following a strong closing Friday. It’s very likely that prices will rebound in the upcoming days, depending on numerous factors.
Global Economic Uncertainty Holding Gold Steady
Gold is often seen as a wise investment in times of economic uncertainty. Right now, with issues facing the United States in terms of Russia and the election, as well as heightened awareness of terrorism in the wake of the attack in Manchester, investors see gold as a safe investment, one that won’t take a tumble if collusion with the Russians is substantiated or another terrorist attack happens in the near future. Many analysts see gold as a great investment, likely to continue to increase in price in future months.
Of course, short-term investing in gold doesn’t require major gains in gold price for traders to make profits. All they need is the savvy to buy during low points on a given day or during the week and sell when prices rise.
Trading Gold Online Is Easy and Potentially Profitable
For those who watch markets closely, trading gold on an online Forex platform can be a great idea. You can leverage your investment, which allows you to control the buying and selling of more gold futures than you could if you were buying physical gold. You can trade from the comfort of your home or office, when you see an opportunity. Now is a great time to try if you haven’t yet.
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